Drawdown on Equity Line (6833B)

TIDMXEL

RNS Number : 6833B

Xcite Energy Limited

23 February 2011

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

TSX-V, LSE-AIM: XEL

23 February 2011

Xcite Energy Limited

("Xcite Energy" or the "Company")

Drawdown on Equity Line

Xcite Energy announces that it has drawn down on its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") in the amount of GBP5 million (CAD$7.975 million). This draw down has been undertaken at a price of GBP3.38 (CAD$5.40) per share and will result in the issue of 1,480,754 ordinary shares of no par value in the capital of the Company (the "New Ordinary Shares") to Yorkville.

Subject to the terms of the SEDA and except in accordance with Canadian securities laws and with prior written approval of the TSX Venture Exchange, the shares issued to Yorkville under this draw down may not be sold or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until the date that is four months and one day from the date of issue.

Application will be made for the admission to AIM ("Admission") of the New Ordinary Shares upon approval of the share issue by the TSX Venture Exchange. The New Ordinary Shares will rank pari passu with the Company's existing issued Ordinary Shares.

 
 ENQUIRIES: 
  Xcite Energy Limited                              [phone] 
                                 Chief Executive 
 Richard Smith                    Officer 
                                 Chief Financial 
 Rupert Cole                      Officer 
 
 Arbuthnot Securities Limited                       [phone] 
  (Nomad and Broker)                                 2000 
 Antonio Bossi                   Director 
 
                                                    [phone] 
 Pelham Bell Pottinger                               3232 
 Mark Antelme 
  Henry Lerwill                  Director 
 Paradox Public Relations                           [phone] 
 Jean-Francois Meilleur          Consultant 
 
 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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